Wednesday, April 22, 2009

A sober post

There was funny time when Britain was doing really well, the economy was singing and Public Borrowing was still at 3.5%. This was about 2 years ago.

I would like to see some figures on how much of the deficit is going where. A lot must be from falling tax receipts and rising benefits and there are some job creation schemes but a huge chunk of the rest must be from bank subsidies.

This is entirely the wrong channel to go through, although I accpet this wasn't easy to see three months ago. Banks are moving from the central mechanism of the economy to one of its servants and filling them with cash is like piling bricks under the high side of the leaning tower of Pisa.

There's got to be a more decentralised way of getting money into the hands of people and easing the massive structural shift the economy is experiencing.

Oh wait, there is.

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